Licensed contractor built a spec house in 2006, sold in early 2007.
I'm putting 100% construction costs as year end inventory on Schedule C page 2, and taking all allowable expenses (depreciation of equipment purchased, truck depreciation and expenses, etc., etc.)
Next year the sale price of the spec house will be income, and year the inventory will be zero.
Question: Is this the correct proceedure?
I'm putting 100% construction costs as year end inventory on Schedule C page 2, and taking all allowable expenses (depreciation of equipment purchased, truck depreciation and expenses, etc., etc.)
Next year the sale price of the spec house will be income, and year the inventory will be zero.
Question: Is this the correct proceedure?
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